Increase Day Rate

[cannon999]

20%? Really?

The ONS says that it’s 4.9% https://www.ons.gov.uk/economy/inflationandpriceindices

I don't listen to news, I pay attention to facts/events I have personally witnessed. Here's a few facts from the past year:

- We had a bunch of work (multiple jobs: rendering, gutters, driveway etc the list goes on) on the house quoted a year ago to be done in 2022. We are getting everything requoted now and the prices are 15-20% higher.
- My favorite chocolate bar at my local asda went up from 1.50 to 2.20. And no, it was not on sale before.
- Local M and S is now charging an arm and a leg for their food compared to a year ago.
- My accountant has increased the charge for their service by 15%
- Don't get me started on petrol/gas/electricity.
- Valuation of our house has gone up by 35%. In 1 year! That's either the biggest house market bubble brewing or our currency is going down
- Contracts for my skillset have gone up by about 25-30%. The whole IT industry has kept up really well with inflation!

I could go on but that's just my 2 cents. The figures are bulltulip, 5% is not what I am seeing in day to day life. You can only explain so much away with brexit, covid etc. The reality is that printing money only gets you so far.

[RandomContractor]

The way I see it is like this. If you ask your agent for a rate increase its going to end 1 of 3 ways.

1. You get the increase.
2. You get told no and accept it.
3. You walk.

If you have no leverage, 2 is going to be what happens in most cases and the agent knows this. So how do you get the leverage?

1. Find out the rate being paid by the client. I'm not saying to go ask, but people love to talk and documents are always being left laying around or even sent to you.
2. Get the client to want to renew you. If the client wants to keep you they will let you know. Don't ask the agent about renewals because that gives them power. "hey I managed to get you a renewal, look how good I am to you". The reality is the client is actually desperate to keep you.
3. Be in demand. Basic supply and demand, if the agent knows you are unlikely to find another job soon why would they be worried? But if they know they can't replace you easily it's a different story.
4. Be prepared to walk. If you are not prepared to walk don't even bother. You are bringing a knife to a gun fight.

No agent is your friend, no matter how hard they try to fake it. This is a business relationship and they are making money of you.
Set your stall out, give your terms. They will try most tricks in the books but you have to hold firm.
The power of silence is a great tool here. A lot of agents will leave you to stew while they 'see what they can do'. Don't message them. You have made your proposal, the ball is in their court. Contacting them before they contact you shows weakness.
If you flinch first you've lost.

I recently got a 15% increase.

[rocktronAMP]

The way I see it is like this. If you ask your agent for a rate increase its going to end 1 of 3 ways.

1. You get the increase.
2. You get told no and accept it.
3. You walk.

If you have no leverage, 2 is going to be what happens in most cases and the agent knows this. So how do you get the leverage?

1. Find out the rate being paid by the client. I'm not saying to go ask, but people love to talk and documents are always being left laying around or even sent to you.
2. Get the client to want to renew you. If the client wants to keep you they will let you know. Don't ask the agent about renewals because that gives them power. "hey I managed to get you a renewal, look how good I am to you". The reality is the client is actually desperate to keep you.
3. Be in demand. Basic supply and demand, if the agent knows you are unlikely to find another job soon why would they be worried? But if they know they can't replace you easily it's a different story.
4. Be prepared to walk. If you are not prepared to walk don't even bother. You are bringing a knife to a gun fight.

No agent is your friend, no matter how hard they try to fake it. This is a business relationship and they are making money of you.
Set your stall out, give your terms. They will try most tricks in the books but you have to hold firm.
The power of silence is a great tool here. A lot of agents will leave you to stew while they 'see what they can do'. Don't message them. You have made your proposal, the ball is in their court. Contacting them before they contact you shows weakness.
If you flinch first you've lost.

I recently got a 15% increase.

Agree with this 100% and especially #3 above; you want to be in a position of leverage: remember that you always have the power of two feet.

I would also find another client who will either pay the new contract rate or come very close it. Be in the way, "I already have had an informal conversation with ACME and they are potentially offering £750 per day."

We need to get back to the old-style First-Tuesdays and DevOps London monthly networking (face-to-face) events. Sometimes just having that connection. "I remember so-so from that rubbishy JavaScript Dojo talk at conference UVW" can be the trigger to a brand new gig. The investment bankers, especially traders, the blighters could jump ship from one bank to the next bank, back in the day. The fella at Bank of America suddenly is working 6 months after the February bonus at Credit Suisse, because there were literally across or down 5 minutes walk the Colonnade. It is hard to do it virtually ... but that is my advice.

[Elliegirl]

You need to be clear about your next steps if you don't get what you ask for, and as always, if you don't ask, you don't get. I knew I would stay even if they didn't agree to my request, because it was a great gig. Knowing this actually gave me extra confidence in asking. I didn't get as much as I wanted, but I did get a nice increase. And it worked out even better as I had a couple more contract extensions.

[lecyclist]

"The most painful state of being consists in remembering the future, particularly the one you’ll never have" - Kierkegaard

Kierkegaard understood the existential angst of choice. People have a tendency to stick with what is familiar, even unhealthy, rather than face the stress of making a wrong decision.

While my favourite quote of his, “It’s better to get lost in the passion than to lose the passion”, emphasises that you can only stick around for so long in a bad contract/ relationship/ life path before the marrow gets stripped from your bones. Bukowski's poem "Bluebird" provides another slant on the same theme.

Let the good contracts run, cut the others as soon as you can.. and if you need to stay, at least make sure you are paid appropriately.

[PerfectStorm]

Let the good contracts run, cut the others as soon as you can.. and if you need to stay, at least make sure you are paid appropriately.

Agreed with all of this. If you have the financial freedom to do so - not living month to month, then do.

One of the best things I did in the past few years was quit a contract that was making me unhappy at an otherwise unhappy period of my life. I left at the beginning of summer with nowhere to go to, much to the bemusement of client and agency. I spent a few weeks doing exactly what I wanted to, went on holiday, got a better gig (that I wouldn't have been able to accept if I hadn't left) and slowly but surely, life got better.

[TheDude]

I wonder if some of my contractor ex colleagues who used to brag about their sports cars, parts shares in aircraft and rental properties mentioned cost of living increases when it came to renewal time?

[d000hg]

My favorite chocolate bar at my local asda went up from 1.50 to 2.20.

I'd lead with this at contract negotiation.

[d000hg]

I would also find another client who will either pay the new contract rate or come very close it. Be in the way, "I already have had an informal conversation with ACME and they are potentially offering £750 per day."

If you are on £500 and say that, they will (probably quite genuinely) advise you to take the other gig.

[eek]

- My favorite chocolate bar at my local asda went up from 1.50 to 2.20. And no, it was not on sale before.

You shop at Asda - INKSPE or that anyone rich enough to shop elsewhere would shop at Asda even if it is convenient.